Slumping AI stocks drag Wall Street lower, oil prices jump as US launches more airstrikes on Iran
Chip and AI shares fell as investors worried valuations were stretched and oil prices climbed after the U.S. expanded strikes on Iran.
- On Friday, Wall Street faced losses as the United States expanded airstrikes against Iran, hitting infrastructure near the Strait of Hormuz and raising shipping concerns. Brent crude prices rose 2.5% to $86.34, pressuring stocks.
- Chip stocks remain under pressure amid investor concerns that prices have shot too high and demand for processors may not be sustainable if AI fails to produce promised profit and productivity gains.
- Netflix sank 6.8% after its revenue fell short of analyst expectations, while Intuitive Surgical dropped 12.6% despite topping profit targets, exemplifying the divergence between earnings results and market sentiment.
- Tech sold off worldwide, with indexes tumbling 6.5% in Taipei, 4% in Tokyo, and 3% in Shanghai; SpaceX fell 4.5% after aborting a Starship launch while SoftBank Group shed 9%.
- High oil prices sent Treasury yields upward, threatening to slow the economy and undercut stock valuations, while potential gasoline price hikes from the crude rally could complicate the Federal Reserve's inflation strategy.
36 Articles
36 Articles
World stocks fall in semiconductor rout; oil rises on Middle East escalation, Money News
NEW YORK/LONDON - Share indexes tumbled around the world on Friday (July 17), as heavyweight chip stocks plunged for a third consecutive day as investors reduced bets on artificial intelligence, with China's Moonshot releasing a large AI system.Meanwhile oil prices rose to their highest levels in more than a month as the United States and Iran risked further escalation as...
Oil prices continue to rise after renewed attacks in the Middle East. Investors fear that this may weaken the world economy. Meanwhile, a disappointing outlook on the stock market is burdening Netflix's price.
Peace Sells, but Who's Buying?
Not us! Bridges, rail lines, power and water facilities and other targets in Iran, Kuwait and elsewhere in the Middle East were attacked in airstrikes on Friday as the United States and Iran escalated their weeklong crisis over the Strait of Hormuz. Since President Trump declared a cease-fire agreement “over” more than a week ago, daily bombardments have escalated into some of the most widespread attacks since the war began in late February. Th…
New York stock exchanges closed the weekend with losses on Friday. The sell-off among chip manufacturers intensified on Friday. Investors are increasingly concerned that tech companies' massive spending on artificial intelligence (AI) is becoming increasingly difficult to justify.
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